Agenda item

Report by the Director of Communities, Economy and Transport.

39.1     The Head of Economic Development, Skills and Infrastructure introduced the report. ESCC provided the Catalysing Stalled Sites (CaSS) funding during 2015/16 to unlock stalled housing and employment development sites through a £915,000 capital programme. It is intended to help overcome viability issues on development land such as access, flooding, contaminated land, environmental issues and pre-site development work.

39.2     To date 40% of the funding has been awarded, and the programme continues to be promoted through various business networks. The continuation of the CaSS fund is important for housing and commercial development projects and to develop a pipeline of projects for funding by the Local Enterprise Partnerships (LEP’s) and other funding streams. Often CaSS funding is a stepping stone to obtain greater private sector or public sector funding for sites which might not otherwise be developed. The CaSS programme may also be able to support aspects of the developing ESCC Property Asset Disposal and Investment Strategy.

39.3     The CaSS programme has received 26 applications so far, and the programme is getting more support from the various business networks ESCC works with. There have been successes such as the Ivyhouse Lane pre-development cost funding. In addition, this scheme has applied through the ESCC grants and loans panel to develop 20 businessincubation unit work spaces. Some of schemes that the CaSS programme has funded, have not proceeded for reasons such as:

·          Site owners choosing not to proceed;

·          Site owners going out of business, leaving the premises or a change in site ownership;

·          Applicants failed to acquire premise/site and/or planning issues or demand not evidenced; and

·          Funding being obtained from other sources to progress the scheme (e.g. an Eastbourne housing development).

39.4     The Assistant Director Economy outlined that the CaSS programme is a relatively new fund and is targeted at developing a pipeline of projects to attract further funding from LEP’s. The CaSS programme is used to establish scheme viability. So far it has been possible to attract £110 million of additional funding through the creation of detailed business cases and the submission of bids to LEP’s.

39.5     The Committee commented that the initial name of the programme (CaSS) is confusing, but changing the name to Scheme Enabling Fund (SEF) might be equally confusing. After some discussion, the Committee recommended that the programme name be changed to “Stalled Sites Fund”, but noted that the name is not as important as making sure the intended outcomes of the programme are achieved.

39.6     The Committee commented that the programme was a good example of pump priming and asked how the programme is promoted.  The Assistant Director Economy explained that the programme is promoted through the businesses networks such as Let’s Do Business Group, Team East Sussex, Developers East Sussex, Locate East Sussex, Borough and District Councils, county council property colleagues and the Business East Sussex (BES) Growth Hub that ESCC is involved with.  The Committee asked if there are ways the programme could seek the repayment of funding from schemes that were judged to be feasible, but do not go on to be developed.  The Assistant Director Economy outlined that sometimes the situation with individual schemes is very complicated, but the Team will look at ways to recover and re-invest funding where possible.

39.7     The Lead Member for Economy explained that the CaSS programme funds are allocated through an experienced grants and loans panel made up of ESCC Councillors and other professionals, who undertake a detailed analysis of the business cases. Sea Change Sussex has successfully developed business cases to secure Growth Deal funding from LEP to bring forward sites for development. This investment has also attracted private investment which has created quality employment opportunities in East Sussex.

39.8     The Committee asked how much staff resource is involved in supporting the CaSS programme. The Assistant Director Economy outlined that the grants and loans panel is supported by two officers, who work on the CaSS programme as well as other programmes such as East Sussex Invest, Incubator Units and the Upgrading Empty Property Fund. In total these officers administer programmes worth around £2 million, with staff costs paid for out of the capital budgets.

39.9     The Committee commented that it was a really interesting report and would like a further update on the programme at some point in time in the future. It was agreed that an update briefing paper would be circulated to the Committee in around a twelve months time.

39.10   The Committee RESOLVED to:

1)    note the report;

2)    request an update briefing paper on the programme be circulated to the Committee in about  twelve months time; and

3)    recommend that the name of the CaSS programme is changed to the “Stalled Sites Fund”.